What an ITC actually is

ITC’s are essentially designated areas which the government has allocated specifically for tourism and residential developments. Article 1 of the Executive Regulation of the System of the Ownership of Real Estate in Integrated Tourism Complexes sets out a more extensive definition of ITC’s. Qualifying as an ITC, however, is not automatic. Article 5 of the executive regulation lays out the licensing requirements, and some of them are more specific than buyers might expect. A complex must sit on at least 200,000 square metres of land, suited to commercial, residential, or touristic use, and the developer must first secure preliminary plans approved by both the Ministry of Tourism and the Governmental Licensing Committee. Other conditions are less expected: the site must be at least 20 kilometres from Oman’s international border, non-touristic real estate cannot exceed half the land used for construction, and, perhaps most tellingly, the number of residential units in the complex can never exceed the number of hotel units. An ITC, by design, has to remain a tourism project first and a residential one second. This does not mean every unit has to look like a resort. Ordinary residential real estate can account for as much as half of an ITC’s built area, so buyers can find standard homes and apartments within these zones, not just hotel-style properties.

Buying inside vs outside an ITC

Outside an ITC, the default rule is restrictive. In 2018, Royal Decree 29/2018 issued a law prohibiting non-Omanis owning land and real estate in certain areas. This includes entire governorates, specific wilayats, islands, and land near military and archaeological sites. Integrated Tourism Complexes are the deliberate exception to that rule. Any sale, transfer, or other ownership made in breach of law is void from the outset. Anyone affected can demand its nullification, and under article 9, the court must rule on it even if neither party raised the issue, meaning the prohibition cannot be quietly bypassed by agreement between the parties. Violations carry imprisonment of 3 months to 2 years and fines between 1,000 and 5,000 Rial Omani under article 10, with the higher penalties applying where fraud is involved. Inside a licensed ITC, none of this applies. Non-Omani owners can be granted residency for themselves and their immediate family, an initial two-year term that renews automatically in six-year cycles for as long as they hold the property. That certainty, however, still depends on getting the registration right.

Where the new Registry Law fits in

Registration in Oman is no longer the same process it was a year ago. As of May 2026, that process now runs through the Real Estate Registry Law of 2026. To prove ownership of land under the Real Estate Registry Law, an individual needs an official paper or electronic document issued by the ministry, known as the mulkiya. It is the only proof of ownership recognised by law, signed and issued by the Secretariat of the Real Estate Registry. This applies to non-Omani buyers too. Article 12 expressly permits registrations in the name of non-Omanis or legal persons, in accordance with the laws governing ownership eligibility, meaning the ITC system covered earlier. Yet none of this applies unless the underlying transaction is registered in the first place. Article 10 makes clear that any disposition creating or transferring a real estate right, including court judgments, has no effect beyond a personal obligation between the two parties unless it is registered, an unregistered sale does not bind anyone else. The system also has teeth against fraud: obtaining registration through falsified documents now carries up to three years imprisonment and fines reaching 30,000 Rial Omani.

Due diligence

Before paying anything, buyers should confirm the development is a genuinely licensed ITC, and not simply marketed as one, since that status requires government approval and specific licensing criteria. Additionally, buyers are encouraged to ensure the developer holds a valid licence under the Law Regulating Real Estate, and that the transaction is actually being registered with the Secretariat of the Real Estate Registry, with the mulkiya issued as proof. For pre-construction purchases, this means confirming registration in the Preliminary Real Estate Registry rather than relying on a private sale agreement alone. Buying property in Oman as a foreigner comes down to two questions: is this an ITC, and is it properly registered. Get both right, and the rest of the process is straightforward.

While ITCs remain the primary path for foreigners to buy property in Oman, it is worth noting that the Law of Special Economic Zones and Free Zones of 2025 creates a new parallel framework for creating free-hold residential projects in which foreigners are permitted to own projects, but no such projects are available in the market until now.

For further detail on Integrated Tourism Complexes, the full text of the System is linked below.

Written by:

Zayd Al Harrasi

Zayd is a legal intern at Decree. He is interested in corporate, commercial, and company law. He is about to start the final year of his Business Law Degree at Nottingham Trent University.

Who is Taxed: Residents vs Non-Residents

Not everyone in Oman will be taxed the same way, the law draws a line between residents and non-residents.To begin with, under article 1, to be classified as a tax resident, an individual would have to have resided in the Sultanate of Oman for a period exceeding 183 days, continuous or intermittent, during a tax year. Anyone who does not meet this threshold is classified as a non-tax resident. This distinction matters because it determines the scope of income each person is taxed on. Article 6 imposes annual tax on net income of a tax resident in or out of the country. Meaning, tax residents get taxed on income made worldwide, while non-tax residents only get taxed on income made in Oman, a common approach that ties tax liability to where economic activity actually occurs, rather than to the individual.

How the Tax is Calculated

Not a single rial of income is taxed until it passes through three separate filters. First, gross income is simply defined as everything a person receives during a tax year, such as salaries, rent, interest, and so on. Second, every taxpayer starts with a 42,000 Rial Omani exemption on their gross income, since only earnings above this amount count as net income. For example, someone earning 60,000 Rial Omani a year would have a net income of 18,000 Rial Omani, which is the starting point for the next stage of calculations. Finally, the 18,000 Rial Omani is further reduced by any exemptions, allowable costs, and losses to arrive at the taxable income, to which Article 8’s 5% rate is then applied. Assuming no further deductions take place, the 18,000 Rial Omani would be taxed at 5%, resulting in a final tax bill of 900 Rial Omani.

What’s Taxed, and What’s Exempt

The law recognises eleven distinct sources of income, though it also exempts a handful of them entirely. Chapter Three of the Personal Income Tax Law outlines all the sources included in gross income, among them salaries, self-employment, rent, royalties, interest, and returns from stocks, real estate, and pensions. Article 25 carves out a number of exemptions, most notably for the sale of a primary residence, education and healthcare expenses for the taxpayer and their immediate family, and zakat and donations, capped at 5% of gross income. Taken together, these exemptions tend to target life’s essentials rather than income broadly, including housing, health, education, and charitable giving. Several are also limited in scope, the secondary residence exemption, for instance, can only be claimed once in a person’s lifetime, underscoring that these are targeted reliefs rather than a blanket reduction in tax.

Conclusion

The Personal Income Tax Law may not take effect until 2028, but its architecture is already clear. Royal Decree 56/2025 sets the structure, but the executive regulation will supply the details that determine how it actually works in practice, from allowable costs to compliance procedures. With more than a year still to go before the 1 January 2028 effective date, individuals and employers have time to get ahead of it, starting with the fundamentals laid out here.

To find out more on the upcoming personal income tax law, you can read the law on the link provided below:

Written by:

Zayd Al Harrasi

Zayd is a legal intern at Decree. He is interested in corporate, commercial, and company law. He is about to start the final year of his Business Law Degree at Nottingham Trent University.

Legal Basis

Oman’s leave entitlements are outlined in part 4 of the Labour Law of 2023 which contains a dedicated chapter spanning articles 77 to 84 titled “Leave”, covering everything from weekly rest to more specific categories.

Annual and Weekly Leave

Under article 77 of the Labour Law, employees have the right to weekly paid leave for no less than 2 consecutive days per week, which can not be forfeited even if an employee is absent from work, with or without a reason. However, the law does allow some flexibility in certain cases. For jobs and areas designated by the Minister of Labour, employers can combine the rest days and grant them in a single block rather than weekly, without reducing the total days owed. This scenario is typically found in cases where an employee works in a remote worksite or has a rotational schedule such as the 2-week on/2-week off system used in some oil companies. Beyond the weekly rest, subject to article 78, employees are guaranteed an annual leave of no less than 30 days, though, annual leave cannot be taken before an employee completes 6 months of service. If the annual leave is not utilised, the employee has the right to carry over the annual leave for an allowance not exceeding 30 days unless the reason the leave was not used was because of the interest of work, in which case, the 30-day cap does not apply, meaning they can carry over the full unused balance uncapped. In accordance with article 81, an employer can postpone leave, if the interest of work requires it, for no more than six months. Workers shall take leave at least once every two years for a period of no less than 30 days and the worker is entitled to the gross wage for his annual leave balance if his service ends before exhausting it.

Sick Leave

Every worker in Oman is entitled to sick leave, article 82 discusses sick leave and the conditions attached to it. Provided that illness is proven, workers are entitled to 182 days, though pay during this period is not fixed at one rate. Instead, it decreases the longer the leave continues. For the first 21 days, the worker will receive their full gross wage, it then drops to 75% from day 22 to day 35, from day 36 to 70 the gross wage drops to 50%, and finally, from day 71 to day 182 the gross wage drops to 35%. This structure means sick leave remains fully paid only for the first three weeks, after which the financial burden is gradually shared.

Maternity and Family-Related Leave

Among the ten categories of special leave listed in article 84, maternity leave is the most extensive, granting a female worker 98 days split between the period before and after delivery. Of the 98 days granted, a female worker is also entitled to 14 days leave to cover the period prior to childbirth, provided that a competent medical entity recommends it. In contrast, a male worker is permitted 7 days paternity leave at any time before the child reaches the age of 98 days and provided that the birth is successful. A worker is also entitled to 3 days leave in the event of their marriage. Additionally, a Omani worker is entitled to 15 days throughout the year to accompany a patient with whom he has a marital relationship or kinship up to the second degree. The Labour Law sets out several tiers of bereavement leave, scaled to the closeness of the relationship. A worker is entitled to 3 days leave for the death of a parent, grandparent, or sibling, and 2 days for the death of an aunt or uncle. A more significant loss, the death of a spouse, son, or daughter, carries 10 days of leave. Widowhood is treated separately, a Muslim woman is entitled to 130 days of leave following her husband’s death, reflecting the Islamic mourning period (iddah), while a non-Muslim woman is entitled to 14 days.

Conclusion

Beyond the leave types discussed above, the Labour Law also grants workers up to 15 days once during their service to perform Hajj, and Omani workers up to 15 days a year to sit exams while studying. Leave entitlements are largely the same regardless of nationality, though a handful of provisions, such as exam leave and the right to accompany a sick relative, are reserved for Omani workers specifically, while non-Omani workers receive an added benefit of their own, a return ticket to their home country during annual leave. It is worth noting, too, that these provisions don’t apply universally, categories such as government and defence personnel are governed by their own separate service laws rather than the Labour Law, meaning their leave entitlements sit outside this framework entirely. Taken together, these provisions reflect a leave system that is broad in scope but not without its carve-outs, one that balances a worker’s personal, religious, and family needs against the practical realities of the workplace.

It is highly recommended that you familiarise yourself with the full provisions of the Labour Law. You can read the complete text of the Labour Law at the link below:

Written by:

Zayd Al Harrasi

Zayd is a legal intern at Decree. He is interested in corporate, commercial, and company law. He is about to start the final year of his Business Law Degree at Nottingham Trent University.

Giving Unions Room to Operate

One of the clearest obligations imposed on employers, is the duty to provide labour unions with the physical space and resources needed to operate. Under article 35, this means a properly equipped office, internet access, a phone line, and the other basics a union needs to operate. Additionally, employers shall permit access to relevant administrative and financial data affecting its members, such as, records tied to training, wages, decisions, promotions, and disciplinary action, in accordance with article 26. Though, the union must still adhere to the confidentiality of such data, and can only use it within the parameters the decision sets out.

Allowing Union Work to Take Place

The most substantial set of obligations imposed on employers concerns time. Fundamentally, it is about allowing employees to perform union work during work hours. Subject to article 66, union members must be excused from their regular duties to carry out union business. For smaller unions consisting of less than 100 members, 30 days per year suffices. Mid size unions consist of 100 to 300 members, meaning they get a total of 90 days per year. The union member selected by the administrative body for a union with more than 300 members, must be excused from work full-time. This is a meaningful switch from the old system, which calculated excusal on a weekly basis rather than an annual one. Furthermore, none of this comes at the employees expense. Excused members will keep their full wage, promotions, and periodic allowances, with their time away still counting towards their actual length of service, in accordance with article 69. Those excused full-time are also exempt from performance evaluation for these purposes, instead, their last review, or their average over the past three years if higher, is used to determine allowances and promotions. This decision introduces a new provision which requires employers to provide means of transport for members carrying out union tasks that are 150 kilometres away from the headquarters of the labour union, trade union, or the general federation, provided the establishment is notified at least 5 days before the task takes place, except in urgent cases, such as a workplace accident or a labour strike.

Limits on Employer Interference

Beyond what employers are required to do, the decision also sets restrictions on employer conduct. Under article 6, an employer is not permitted to transfer a member of the administrative body from the worksite the union has designated as its headquarters without the consent of the member. Furthermore, this extends to article 70 which prohibits an employer from performing an act which results in the disruption of union work. The non-disruption duty in article 70 reflects protections already grounded in the Labour Law, so it is not a new burden; the transfer restriction in article 6, however, does not appear in the old Ministerial Decision 500/2018 or in its 2022 amendment.

Supporting Union Democracy

The final obligation is more of a procedural one. Employers also have a role in supporting the democratic process within the union itself. Article 14 sets a duty upon employers to facilitate the election of members of the administrative body of a labour or trade union, a duty that carries over largely unchanged from the previous decision.

Conclusion

Ultimately, these obligations convey that Ministerial Decision 284/2026 asks relatively little of employers in financial terms. The real cost is in time, access, non-interference, and in understanding exactly what the decision now expects of them, with article 68’s transport requirement arising as the one genuinely new burden. It’s also worth noting that the decision’s changes extend beyond these specific duties. Registration is now considerably faster, and several approval powers have shifted from the Ministry to the General Federation, pointing to a union landscape that moves quicker and answers less directly to the state than before. For employers, the takeaway is straightforward. This decision is about making space, allowing time, and staying out of the way, not a financial one. For the full text of Ministerial Decision 284/2026, including provisions not covered in this post, we highly recommend reading it in full via the link below:

Written by:

Zayd Al Harrasi

Zayd is a legal intern at Decree. He is interested in corporate, commercial, and company law. He is about to start the final year of his Business Law Degree at Nottingham Trent University.

The Executive Branch

The executive authority is exercised by the Sultan with the assistance of the Council of Ministers who are entrusted with implementing the public policy of the state. Under article 51 of the Basic Statute of the State in an effort to assist the Sultan, the Council of Ministers may advise on matters that concern the state, such as proposing draft laws and royal decrees. Additionally, the Council of Ministers has a duty to safeguard citizens’ access to necessary services, and to oversee that laws, decrees, and other legal instruments are properly implemented. Furthermore, ministers oversee the affairs of the units they head, implement government policy within them, and monitor how that policy is carried out, in accordance with article 58.

The Legislative Branch

Oman’s legislative body, Majlis Oman, is divided into two Majlis’s. Majlis Al-Dawla and Majlis Al-Shura. Article 72 allows Majlis Oman to debate the state budget and development strategies, enact and amend draft laws, whilst also suggesting draft laws of its own. While it does come with its limitations, this is a legitimate legislative function. As Majlis Oman does not sit year-round, article 73 permits the Sultan to issue decrees between the Majlis sessions or while the Majlis Al-Shura is dissolved. As a result, law-making is not the sole domain of the legislature.

The Judicial Branch

According to articles 77 and 78, judicial authority is autonomous, exercised by the courts, and judges cannot be removed unless specifically authorized by law, meaning it is not permitted for any entities to interfere with court affairs as it may lead to charges punishable by law. Additionally, article 85 mandates that the legislature appoint a body capable of determining whether laws, decrees, and regulations comply with Oman’s constitution, the Basic Statute of the State.

Limits on the Separation of Powers

All three powers are distinguishable on paper. However, all three ultimately trace back to a single source of authority, the Sultan. Majlis Al-Dawla members are appointed by the Sultan rather than being elected. Judicial appointments run through the Sultan, and judgments are made and carried out in his name in accordance with article 81. The key point to remember is that, unlike the traditional separation of powers model, which is most closely linked to Montesquieu, Oman’s Basic Statute clearly distinguishes functions but does not split the power into completely independent branches. It is closer, in some respects, to the British model, where distinct institutions work alongside one another without one holding power to override or restrain another.

Conclusion

Oman’s Basic Statute draws clear functional lines between its executive, legislative, and judicial institutions, even where those institutions ultimately answer to the same source of authority. We highly recommend reading the full text of the Basic Statute of the State on Decree to explore these provisions in greater depth on the link below:

Written by:

Zayd Al Harrasi

Zayd is a legal intern at Decree. He is interested in corporate, commercial, and company law. He is about to start the final year of his Business Law Degree at Nottingham Trent University.